CSHB 224(STA): "An Act relating to reemployment of persons who retire under the teachers' retirement system."

00 CS FOR HOUSE BILL NO. 224(STA) 01 "An Act relating to reemployment of persons who retire under the teachers' retirement 02 system." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.20 is amended by adding a new section to read: 05 Sec. 14.20.136. Reemployment of member of teachers' retirement system. 06 (a) Subject to (b) - (d) of this section, a school district may reemploy a member who is 07 retired under a retirement plan established in AS 14.25.009 - 14.25.220, or a member 08 who is retired under a retirement plan established in AS 14.25.310 - 14.25.590. In this 09 subsection, "school district" has the meaning given in AS 14.30.350. 10 (b) A member who is retired under AS 14.25.110(a) may not be reemployed 11 under (a) of this section unless the member 12 (1) certifies that the member and the school district did not arrange 13 before the member retired from the school district for the member to be reemployed 14 by the school district after the member retired; and

01 (2) has been retired for at least 02 (A) 60 days if the member is at least 62 years of age; or 03 (B) six months if the member is less than 62 years of age. 04 (c) Before reemploying a retired member under (a) of this section to fill a 05 position, a school district shall publicly advertise the position for 10 business days and 06 actively recruit to fill the position by hiring a person other than a member who is 07 retired. 08 (d) A contract for reemployment under (a) of this section may not exceed 12 09 consecutive months. 10 (e) A school district that reemploys a member under this section who is retired 11 under the defined benefit retirement plan established in AS 14.25.009 - 14.25.220 is 12 required to make contributions under AS 14.25.070. 13 (f) the requirements of (c) and (d) of this section do not apply to the rehire of a 14 member who is eligible for restoration of tenure rights under AS 14.20.165. 15 * Sec. 2. AS 14.25.043(a) is amended to read: 16 (a) Except as provided in (f) of this section, if [IF] a retired member again 17 becomes an active member, benefit payments may not be made during the period of 18 reemployment. [THE RETIREMENT BENEFIT MUST BE SUSPENDED FOR THE 19 ENTIRE SCHOOL YEAR IF THE TEACHER IS REEMPLOYED AS AN ACTIVE 20 TEACHER FOR A PERIOD EQUIVALENT TO A YEAR OF SERVICE.] During 21 the period of reemployment, deductions from the member's salary will be made in 22 accordance with AS 14.25.050. 23 * Sec. 3. AS 14.25.043(c) is amended to read: 24 (c) Except as provided in (f) of this section, upon [UPON] subsequent 25 retirement, the retired member is entitled to receive an additional benefit based on the 26 credited service and the average base salary during the period of reemployment in 27 accordance with AS 14.25.110. If the initial benefit payments to which the retired 28 member is eligible have been actuarially reduced because the member retired early 29 under AS 14.25.110(b), the member shall also receive an incremental benefit based on 30 the amount of the actuarial reduction imposed by AS 14.25.110(j) on the first benefit 31 and the length of time that the employee was reemployed and not receiving retirement

01 benefits. The amount of the incremental benefit is equal to the difference between the 02 normal retirement benefit to which the member would have been entitled had the 03 member taken a normal retirement and the early retirement benefit that the member 04 has been receiving based on the member's initial period of employment multiplied by 05 the total number of months that the member did not receive retirement benefits 06 because of reemployment and that amount actuarially adjusted to be paid over the 07 expected lifetime of the member. 08 * Sec. 4. AS 14.25.043 is amended by adding new subsections to read: 09 (f) If a member who retired under AS 14.25.110(a) is reemployed by a school 10 district under AS 14.20.136, 11 (1) the member does not become an active member; 12 (2) the member shall continue to receive retirement benefits from the 13 plan as though the member were not reemployed by the school district; 14 (3) deductions from the member's salary may not be made under 15 AS 14.25.050; and 16 (4) the member may not receive credited service in the plan during the 17 period of reemployment. 18 (g) Notwithstanding (f) of this section, a member who is retired under 19 AS 14.25.110(a) and reemployed by a school district under AS 14.20.136 is eligible to 20 receive the group health plan coverage provided to active members employed by that 21 school district. 22 * Sec. 5. AS 14.25.070(a) is amended to read: 23 (a) Each employer shall contribute to the system every payroll period an 24 amount calculated by applying a rate of 12.56 percent to the total of all base salaries 25 paid by the employer to active members of the system and to members who are 26 retired from the plan and reemployed under AS 14.20.136, including any 27 adjustments to contributions required by AS 14.25.173(a). 28 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 APPLICABILITY. This Act applies to contracts made on or after the effective date of 31 this Act.